Bitcoin Pulls Back Towards $9,400 After Rallying to New 9-Day Highs

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The bitcoin price on Friday pulled back off the current 9-day high of $9,611 to trade at around $9,414 amid a late build-up in selling pressure. The price of the pioneer cryptocurrency had rallied during the week from a low of about $8,721 to top $9,600 but now appears to have run out of momentum.

Bitcoin continues to trade within a consolidative wedge with a relatively bullish base and less bearish top. The pullback pushed it back towards the center of the 14-hour RSI in the 60-min chart. It continues to trade several levels above the 100-hour and the 200-hour SMA lines.

Bitcoin Price Fundamentals Overview 

From a fundamental perspective, the price of bitcoin continues to be backed by the growing uncertainty over the extent of the global impact of the coronavirus pandemic. Bitcoin is viewed as one of the safe-haven investments in the market. Its finite nature makes it scarce, which means it could be a good store of value. This month’s halving has made bitcoin even more scarce thereby boosting its intrinsic value. Furthermore, the latest US economic data came out mixed, thereby adding doubt to the stock markets.

The US initial jobless claims again missed expectations for the week ending May 22. It has failed to meet or beat expectations since the country went into an economic lockdown amid the COVID-19 pandemic. The preliminary annualized Q1 GDP also missed the expected change of -4.8% with -5%. On Friday, the Chicago Purchasing Managers index missed the expectation of 40 with 32.5. Personal spending and core personal consumption expenditure prices index for April also came short of expectations.

Bitcoin Price Technical Analysis (the 60-min Chart)

Technically, the BTC/USD appears to be experiencing a slight bullish momentum within a consolidative wedge. This indicates that the bulls retain slight control of the price of bitcoin following the flattening of the trend.

The bulls will be targeting short-term profits at around $9,611 or higher at $9,883. On the other hand, the bears will look to pounce on profits at around $9,215 or lower at $8,984.

Bitcoin Price Technical Analysis (the Daily Chart)

In the daily chart, the price of bitcoin appears to have recently pulled back off a major recovery trend. Bitcoin had rallied to top $10,077 on May 18 after recovering from a low of $3,858 reached on March 12. It is now pegged above the 76.40% Fib level in the daily chart.

The bulls will be targeting long-term profits at around $10,077 or higher at 100% Fib level at $10,508. On the other hand, the bears will look to pounce for profits at around $9,011 or lower at $8,391.

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